Notcoin (NOT) has dropped 50% over the past month from its peak of around $0.029. Despite this, the Telegram-linked cryptocurrency is now showing signs of a possible rebound.
It is forming a classic bullish pattern called the inverse head-and-shoulders, which could signal a potential recovery.
Notcoin (NOT) Forms Bullish Inverse Head-and-Shoulders Pattern
An inverse-head-and-shoulders (IH&S) pattern is identified by three troughs: a lower low, known as the head, situated between two higher lows, the shoulders. This pattern is completed when the price breaks above the neckline, drawn by connecting the peaks at the end of the left and right shoulders, accompanied by substantial trading volume. The price is expected to rise by an amount equal to the distance between the head’s trough and the neckline.
As of July 12, Notcoin (NOT) is in the process of forming the right shoulder of its IH&S pattern and is poised for a breakout above the neckline resistance at around $0.017.
NOT/USD four-hour price chart. Source: TradingView
If this breakout occurs, NOT’s price target could rise to approximately $0.031, marking a potential increase of over 100% from current levels. Conversely, if the price falls below the right shoulder’s lowest point, around $0.0133, it could decline toward $0.011, which was a support level in May.
Notcoin (NOT) Faces Downtrend Amid Market Concerns and Strategic Shifts
Notcoin’s recent price declines align with broader downturns in the cryptocurrency market, driven by concerns over the ongoing Mt. Gox reimbursement and significant Bitcoin (BTC) sales by the German government.
The cryptocurrency’s downtrend is also influenced by founder Sasha’s strategic shift away from Notcoin’s click-to-earn gaming model. Instead, the focus has moved towards developing subsystems—a set of applications on Telegram supported by NOT tokens.
Despite these challenges, the Notcoin team is working to expand its ecosystem. This is demonstrated by their recent collaboration with The Open Network (TON) on an NFT project named “Lost Dogs,” showing a commitment to growth and innovation.
Notcoin (NOT) Expands Ecosystem with New Features and Partnerships
The Notcoin team has recently introduced “Explore,” a new feature within its Telegram app that allows users to discover new games and earn rewards. This initiative provides game developers with the opportunity to showcase their projects to over 40 million users. However, developers are required to contribute a minimum of $20,000 in Notcoin tokens to fund these rewards, which could potentially drive higher demand for NOT tokens in the future.
Notcoin’s tweet about Explore feature. Source: X
Additionally, Notcoin has partnered with DeFi pioneer 1inch and Sequoia-backed attestation protocol Sign to launch “Triangle,” a startup accelerator for the Telegram and TON crypto ecosystems. The accelerator program aims to attract developers focused on enhancing the TON user experience, creating popular “tap-to-earn” mini-apps, and developing consumer applications that bridge Web2 and Web3.
These strategic moves and partnerships could positively impact Notcoin’s technical outlook in the coming weeks. With potential signs of lowering interest rates, the upside scenario for Notcoin and the broader crypto market may further strengthen.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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